HME News

APR 2019

HME News is the monthly business newspaper for home medical equipment providers. This controlled circulation publication reaches 17,100 home medical equipment services providers, including traditional HME dealers & suppliers, hospital- and pharmacy-o

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Rx and Specialty Providers 20 www. HM e N ew S . C o M / APRI l 2019 / HM e N ew S Diabetes D igest NEW YORK – One Drop has announced the results of a study demonstrating a -0.93 absolute A1c improvement among people with Type 2 diabetes who use its digital therapeutic solution and Afrez- za, an inhaled insulin. What's more, A1c improved with the One Drop solution— One Drop Mobile app, One Drop Chrome glucose meter and testing supplies and One Drop Experts coaching—regardless of what type of insulin was used, according to outcomes presented at the 2019 Advanced Technologies & Treatments for Diabetes conference in Berlin. Previous research had already showed Afrezza improves the A1c of people with Type 2 diabetes… Abbott has announced data from three real-world evidence studies, which for the Insulet hits milestone ACTON, Mass. – Insulet Corp. has reported net income of $9.9 million for the fourth quarter of 2018 compared to a net loss of $6.9 million for the same period in 2017. The company reported net income of $3.3 million for all of 2018 vs. a net loss of $26.8 million for 2017. It's the first time in Insulet's history that the company has achieved full-year positive operating income and net income. "Insulet had a remarkable 2018, achiev- ing our third consecutive year of over 20% revenue growth, significantly improving gross margin, and achieving profitability for the first year in the company's histo- ry," said Shacey Petrovic, president and CEO. "Our fourth quarter and full-year results were driven by strong commercial and operational execution, and gives us great momentum, ensuring more people with diabetes can benefit from our life- changing equipment." Insulet reported revenue of $164.9 mil- lion for the fourth quarter of 2018, up 26% compared to $130.5 million for the same period in 2017. The company's flag- ship product, the Omnipod Insulin Man- agement System, generated revenue of $93.2 million, a 22% increase. The company reported revenue of $563.8 million for all of 2018, up 22% compared to $463.8 million for 2017. Omnipod generated revenue of $172 mil- lion, up 43%. Looking ahead at 2019, Insulet expects revenue in the range of $662 million to $687 million, representing growth of about 17% to 22%. It expects revenue of $235 million to $244 million for Omni- pod, an increase of 37% to 42%. hme Research: One Drop, Abbott first time included data from the United States, highlighting key benefits for people who use the FreeStyle Libre flash glucose monitoring system. They include reduction in prolonged hypogly- cemia, better glucose c o n t ro l , d e c re a s e d time in hyperglycemia a n d h y p o g l y c e m i a , and increased time in optimal glucose range with frequent scan- ning, according to data presented at the ATTD conference. The FreeStyle Libre reads glu- cose levels through a sensor that can be worn on the back of the upper arm, elimi- nating the need for fingersticks. hme of $18.5 million for the fourth quarter of 2018, an increase of 37% over the same quarter the previous year and its 10 th consecutive quarter of growth. The company grew its ventilator patient count by 8% during the quarter, driven, says CEO Hoyt, by the results of a KMPG study, published last fall, that shows reductions in mortality rates and hospital readmissions. "That's proven to be a wakeup call in the community," he said during the call. Viemed also managed to crack the Veterans Affairs market in the fourth quarter of 2018 and, while it's very early in the game, company execs see long-term potential there. "The VA is a little behind the rest of the clinical community," said Zehnder. "They've got patients being placed on Bipap and being treated incorrectly. It's a revolving door of hospital admis- sions. We've just got to get out there and educate them." Revenues for the full year were $65.3 million, an increase of 39% compared to 2017. Adjusted EBITDA was $4.9 million for the quarter and $17.2 million for the year. Looking ahead, Viemed expects to generate revenues of $20 million to $20.5 million for the first quarter of 2019. hme 2017. It reported net revenues of $67.1 mil- lion for 2018, a 5.5% decrease compared to 2017. Increased market share, however, means investors can expect to see increased costs in the second quarter of 2019, as the com- pany ramps up hiring and investments in infrastructure to support growth in the oncology market, said Dilorio, who sought to reassure investors. "I realize that our long-term investors have heard this before—that the higher spending today will lead to growth in the future," he said. "But this is a different InfuSystem. Over the last (18 months) we have communicated that our priority was on pursuing operating efficiencies and improving cash flows, and I believe we've delivered." To that end, the company reported $11.4 million in operating cash flow in 2018, an increase of 48% compared to 2017, driv- en by an improvement in profitability by $2.8 million, primarily due to net revenue growth and decreased selling, general and administrative costs; and an improvement in working capital net inflows of $900,000, primarily due to increased accounts receiv- able collections. The company is also banking on *InfuSy- stem Mobile, a patient safety app it debuted in May 2018, to help it grow market share. It connects patients with the infusion pro- vider's products, expertise and registered nurses. "The rollout is going well as we continue to set the standard for patient safety," said Dilorio. "Anecdotally, we hear tremendous feedback from not just the clinicians but the patients themselves. It's completely changed the oncology market." hme INFUSYSTEM c o n t i n u e d f r o m pa g e 1 9 VIEMED HEALTH c o n t i n u e d f r o m pa g e 1 9 NHIA VS. HHS c o n t i n u e d f r o m pa g e 1 IV administration day and, for these services to take place, this is how it needs to be reimbursed," she said. "We're going on two months now under this new system and these providers are now getting underpaid f o r t h e i r s e r- vices. It's going to affect patient care." T h e l a w - suit, filed Feb. 14 in the U.S. District Court for the District o f C o l u m b i a , seeks to: change regulations to c o m p l y w i t h statute require- ments, includ- ing "faithfully i m p l e m e n t i n g t h e s t a t u t o r y d e f i n i t i o n o f infusion drug administration calendar day"; w i t h d r a w o r s u s p e n d t h e final rule until i t i s b ro u g h t into compliance with the statute; and make prompt payments that have been withheld as a result of the final rule. Pearce says the association hopes to make its arguments in late spring and receive a decision sometime this summer. "Given that we have only a two- year window under this rule, we feel like we need to have an expedited process," she said. hme " t hese providers are now getting underpaid for their services. i t's going to impact patient care." medtrade booth 815 Business Summit Learn more and order your kit today: The HME industry is a challenge. Make sure you're equipped with the tools for success. The HME Benchmarking Toolkit is developed based on the annual HME News/VGM Group Financial Benchmarking Survey. It helps you discover areas where your business needs improvement, see how you stack up against others and identify key metrics you can track.

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